Business groups pitch plan for 'responsible' data center regulations
Michigan business groups have commissioned a report recommending that state lawmakers implement "responsible" data center regulations to address public concerns and maximize economic benefits. This comes as competing plans for regulations and a call for a moratorium on new data centers are emerging in Lansing, with specific legislative packages introduced by state Senate Democrats. A major hyperscale data center project is currently under construction in Saline Township, serving as a focal point for these discussions.
Consultants hired by Michigan business groups, including the Michigan Chamber Foundation and Detroit Regional Chamber, have issued a report urging state lawmakers to strengthen data center regulations. The report, from Lansing-based Public Sector Consultants, acknowledges public concerns regarding water use, electricity rates, and transparency, while also highlighting the economic investment opportunities these facilities present, spurred by a 2024 state sales and use tax credit.
Senior strategist Jeff Guilfoyle noted that Michigan has lagged in growth and that data centers offer a significant economic opportunity, citing the hyperscale facility in Saline Township that will contribute substantial annual taxes to the township and local schools. Despite these benefits, local communities are concerned about noise, light pollution, water consumption, and energy demands. OpenAI CEO Sam Altman and Oracle executives recently celebrated the Saline project with Governor Gretchen Whitmer, with Altman acknowledging the complexity and public sentiment surrounding data center developments.
These recommendations arrive as the state capitol sees rival approaches to data center regulation. State Senate Democrats recently introduced an eight-bill package proposing limits on water use, mandates for community benefits agreements, and protections for utility ratepayers. Senator Darrin Camilleri (D-Trenton) emphasized the need to center community voices in these projects. Concurrently, a bipartisan coalition of lawmakers and activists, including Representatives Jim DeSana (R-Carleton) and Dylan Wegela (D-Garden City), rallied at the Michigan Capitol, advocating for a statewide moratorium on new data centers. Jim Holcomb, president and CEO of the Michigan Chamber of Commerce, however, opposes a moratorium, arguing it would hinder the state's economic competitiveness and that transparent public debate is the best way to address challenges.